It’s hard to deny that the first quarter of 2022 really put Fantom [FTM] through the wringer. First Andre Cronje and Anton Nell, senior members at the Fantom Foundation, tweeted that they were leaving DeFi and crypto. FTM prices took the news hard. Although they recovered, they soon fell even lower in April and it’s time to look at the metrics to understand what’s going on.
FTM bulls say FML
Earlier on 2 May, FTM saw the biggest daily rally in price amongst the top 50 cryptos, but has plunged since then. At press time, FTM was the 49th biggest crypto by market cap and trading at $0.756 after rising by 12.34% in the last day. In the past week, however, FTM has lost 23.01% of its value.
High levels of volatility, indeed, and the crypto exchanges naturally saw some interesting scenes unfold. FTM supply on exchanges fell sharply, suggesting that investors were buying the dip. However, there were some signs of a possible reversal taking place soon.
Source: Santiment
Adding to this, there was an uptick in FTM whale transactions worth more than $100,000 on 29 April and 30 April. Considering this was followed by a rise in prices, the most likely explanation is that whales were accumulating FTM at cheaper prices. However, it remains to be seen if this is a sustainable trend for smaller investors.
Source: Santiment
After all, when looking at the Adjusted Price DAA Divergence, the indicator was flashing red bars, despite the asset’s significant daily rally at press time.
Source: Santiment
Can Fantom ‘DeFi’ fate?
It’s easy to keep an eye on price and lose sight of all the other metrics, but it’s important to also follow a project’s DeFi scene to gauge its health. At press time, Fantom’s total value locked [TVL] was $4.08 billion. The asset’s TVL climbed by 6.02% in the last day.
The question now is whether Fantom will maintain the pattern or give into bearish pressure once again.
Source: DeFi Llama
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